Proposal on raw sugar sop not taken up by CCEA
The Cabinet Committee on Economic Affairs (CCEA) on Thursday did not take up the proposal to give a cash subsidy of R2,000 per tonne for export of 4 million tonne of raw sugar for two years. Due to paucity of time, the sugar proposal could not be taken up, food minister KV Thomas said after the mee-ting. Sources said agricult-ure minister Sharad Pawar is in favour of an incentive not less than R3,500 per tonne to encourage produ-ction and export. Industry body ISMA has suggested an incentive of R3,500 as well. Raw sugar exports from India are currently not viable as global prices are ruling lower than the domestic production cost of R26,500 per tonne. Mills are facing a cash crunch as well as prices have come down below the cost of production in view of surp-lus supplies. They are also saddled with cane arrears.